2022, a new year to make resolutions.

Financial New Years Resolutions

For many people in this country, 2021 was a very bad year. Some people can even say that it was a worse year financially than 2020. Why not change that in the new year? Here are five financial new year resolutions that you should consider putting into effect in 2022.

1) Finally Making A Budget

Make 2022 the year that you finally sit down and write a budget.

A budget is a financial tool that can do a number of things for you. If you find yourself coming up short between paydays, it will help you pay your crucial bills before you run out of money. Know how much money it takes to cover your fixed expenses and then set monthly allotments for variable expenses like food and entertainment. Budgets keep you on track.

Another benefit of a budget is that it allows you to spot areas that can be improved. It is nearly impossible to improve your spending if you do not know what you are doing with your money. When you have a budget, you can identify wasted spending and resolve the problem.

When making a budget, just keep things uncomplicated. A simple spreadsheet with a list of all your bills and expenses is all that you need. Just be sure to include all spending which means creating monthly allotments for things like food, entertainment, fuel, etc.

2) Trim The Fat Off Your Budget

Just about every budget out there has some fat that can be trimmed, make it a point to do so.

Even if you think that your budget is as trimmed down as possible, make it a resolution in 2022 to take another look. Here are some areas to focus on.

Insurance

Insurance companies have a sneaky little way of slowly raising rates over time. Before you know it, your premiums have jumped 50 percent and you will never see it coming. Take a few minutes and get some quotes on insurance and potentially save hundreds of dollars over the course of a year. Get fresh rates on all of your policies including your auto, home, renters, boat and any other policy you might have.

Food Budget

You and your family have got to eat, but the average food budget is ripe with savings opportunities. One way to save on food spending is with meal planning.

Simply put, you plan all of your meals out which will help you cut down on food waste. For a large family, meal planning can shave 200 dollars or more off your monthly food bill, just from reduced wastage.

Everything Else

No stone should be left un-turned when it comes to your budget. Investigate every category and get quotes to reduce all of your fixed expenses. You might be surprised at just how much money you can put back into your pocket in 2022.

3) Start Saving For Emergencies

If there is anything that this pandemic should have taught us is that emergencies happen. You can’t predict the future, so you must be prepared for it. Make yourself prepared moving forward by starting an emergency savings account.

Everyone should have an emergency savings account, and the good word has always been that you should have 6 months of expenses in it. After the last few years, perhaps at least 12 months of expenses would be a more appropriate target. That may sound like an intimidating amount, but don’t let it be.

The keys to saving are being patient and disciplined. Make that small addition every month and in time, you will build an impressive savings account. But how much should you be saving? 10 to 20 percent of your take home pay. Yes, that is a lot of money but you can do it, with a little help from the budget trimming step above perhaps.

Once you have found that 10 to 20 percent to save, put your deposits on autopilot, into an online savings account. Then, all you need to do is be patient while your money accumulates.

4) Add A Side Hustle

Are you wasting all of your spare time? Sure, some people have extremely busy lives, but most of us have some extra time that we can use to make money.

Make it a resolution in 2022 to get off the couch and add a side hustle. This could be anything from driving with Uber to picking up a night time stocking shift at the big box store. Part time jobs are plentiful these days and they pay better than ever.

Even just picking up one shift a week at the local Walmart can bring huge dividends. It can add 100 dollars a week to your income, which is over 5000 dollars in the course of a year. What could you do with thousands of extra dollars in your pocket next year?

5) Find A Better Day Job

Have you become complacent in your job?

It is easy to do, especially with the events that have happened over the last few years. If you have a job, you are probably just happy to be making money, but that does not mean that you should not be trying to do better for yourself.

What you might not realize is that many people left the job force over the last few years and they do not plan to return to their old jobs. Some retired, some refuse to give up being remote workers and many people just started doing their own thing. The result is that there are a lot of unfilled positions out there.

Make 2022 the year that you advance your career or switch to a more lucrative and stable one. It is never too late to make a change for the better.

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